Bellamy's Australia rebel shareholder Jan Cameron says she is not concerned about the corporate regulator investigating her links to its biggest investor, Black Prince Private Foundation.
Ms Cameron is the voice of a group of shareholders representing about 35 per cent of the register looking to roll the Bellamy's board.
An extraordinary meeting has been set down by the company for February 28.
News that Bellamy's has approached the Australian Securities and Investments Commission came as two litigation funders said they would back separate class actions against the organic baby food and formula maker over disclosure obligations to the market.
Bellamy's is believed to be considering contacting the Takeovers Panel in its next defensive move.
Bellamy's has asked ASIC to investigate Ms Cameron over her relationship with Black Prince, which controls 14.5 per cent of Bellamy's.
Ms Cameron holds a 2pc stake.
The company believes Ms Cameron should have filed a substantial shareholder notice given she and her long-time lawyer, Rodd Peters, are directors and shareholders of the trustee of her Elsie Cameron Foundation.
Curacao-registered Black Prince stated last week it would act in accordance of the wishes of ECF.
Ms Cameron told The Australian Financial Review she does not believe she should have lodged a substantial shareholder notice.
"I don't have control over the shares. If it goes as far as ASIC, I'll abide by what they say, but I'll let them be the judge," she said.
"But all of this bulls--t is really a distraction from what Bellamy's needs to be doing.
“The notice to shareholders noted the lack of experience in company directorships.
“I'll admit I've not been on a [listed] company board, but I'm a brand person.
“I don't see anyone with branding expertise. It's only the brand that is going to get Bellamy's fully functioning again, that's its strength."
If ASIC finds Ms Cameron should have lodged a notice, this raises questions over the level of her holding, whether she is acting in concert with others and whether the funding offered to Bellamy's by Ms Cameron would have put her in breach of takeover rules. ASIC declined to comment.
Bellamy's has not held any discussions with Ms Cameron since it has requested clarity over the Black Prince holding and its motives to dump four independent directors from the board, nor has she been contacted by ASIC.
Ms Cameron added that the class actions are damaging the reputations of the incumbent board.
"It's not just money involved here, it's reputations, and reputations to them mean more than anything," she said.
"This is the sort of thing that keeps you up at night."
Litigation funders Investor Claim Partner (ICP) and IMF Bentham will back a separate class action by aggrieved shareholders, led by law firms Maurice Blackburn and Slater and Gordon respectively, over the sudden deterioration in the group's fortunes.
ACA Lawyers principal Bruce Clark told said his firm is likely to reveal its funding partner this week.
The claims relate to alleged misleading or deceptive conduct and an alleged breach by Bellamy's of its continuous disclosure obligations in connection with its trading prospects and future earnings performance from April 14, 2016, to December 9, 2016, IMF said in an ASX statement.
IMF claimed Bellamy's failed to disclose the adverse effects of regulatory changes in the key Chinese export market for baby formula and trading results that would result in the company falling well short of the market's expectation for the 2017 financial year.
Bellamy's warned in early December it had been hit by a build-up of formula caused by these regulatory changes and lower sales during China's Singles Day shopping event.
On Monday Bellamy's shares fell 4pc, or 16¢ to $3.85, a far cry from the all time high of over $16 hit last year.
The company declined to comment.
- This article appeared first in The Australian Financial Review
